[Congressional Record Volume 140, Number 68 (Thursday, May 26, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: May 26, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
             INTRODUCTION OF THE LONG-TERM CARE ACT OF 1994

                                 ______


                         HON. NANCY L. JOHNSON

                             of connecticut

                    in the house of representatives

                         Thursday, May 26, 1994

  Mrs. JOHNSON of Connecticut. Mr. Speaker, today I am pleased to 
cosponsor a long-term care proposal with my colleague from Connecticut, 
Mrs. Kennelly, because I believe it will help to move the important 
issue of long-term care the forefront of the health care reform debate. 
This proposal shows that there are bipartisan solutions to the very 
real world problems that thousands of Americans face regarding their 
long-term care needs.
  For far too long, long-term care services have been viewed as 
separate and distinct from health care services. It is time to 
recognize that long-term care is in fact part of the continuum of 
services that should be incorporated into any health care reform 
proposal this Congress enacts. The legislation we introduced today will 
do several things to ensure Americans have access to long-term care 
insurance so that they may better plan for their individual needs and 
that individuals with limited resources have access to long-term care 
services that will allow them to maintain as great a degree of 
independence as possible through the use of home and community based 
care.
  Long-term care insurance is a rapidly growing market that offers the 
best option for providing greater coverage for nursing home and home 
care. Unfortunately, it is expensive to purchase long-term care 
insurance and policies don't always deliver what they appear to 
promise. Some insurers have designed long-term care policies that limit 
their liability in ways purchasers don't suspect. Many policies are 
medically underwritten to exclude persons with certain illnesses or 
contain fine print benefit restrictions that limit access to what one 
would assume was covered care. The legislation we are introducing today 
will help to develop a public-private partnership which will guarantee 
individuals who purchase at least 1 year of insurance coverage will be 
protected against catastrophic long-term care costs.
  Although the National Association of Insurance Commissioners has 
taken steps toward establishing standards for regulating long-term care 
insurance, most States have been slow to adopt them. This proposal 
rectifies the inconsistencies in the long-term care insurance market by 
standardizing policies and the sale of insurance.
  In addition, the legislation provides a series of tax changes that 
will help people afford this important coverage. The bill treats long-
term care insurance the same as health and accident insurance, allowing 
premium deductibility. States could be required to develop asset 
protection programs that will provide individuals with a certain level 
of asset protection based on the level of insurance protection they 
purchase. By rewarding those taking responsibility for some of their 
long-term care costs, we can create the kind of partnership necessary 
to provide affordable security for seniors against the catastrophic 
costs of institutional care.
  Finally, this bill will provide a broader range of options to 
individuals with limited means--below 250 percent of poverty--to ensure 
they have access to those long-term home care services which best meet 
their needs. Specifically, this proposal provides grants to States for 
the development of home and community based care programs to complement 
the nursing home care that is currently covered under the Medicaid 
program.
  Taken in its entirety, this proposal provides an outline of the 
policies which should be included in any reform proposal to provide 
Americans with the peace of mind they deserve when it comes to 
protecting themselves and their families. I am proud to cosponsor this 
proposal.

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